8/11/2010 • Issue 6

Belgian EU Presidency Business Newsletter

Brussels calling
Editorial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 General Affairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
CONTENTS

Economic and Financial Affairs . . . . . . . . . . . . . . . . . . . . . . . 1 Biodiversity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Events & meetings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-3
In the spotlight . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Employment and Social Affairs . . . . . . . . . . . . . . . . . . . . . . . 5
Social partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Foreign Affairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
In the spotlight . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
European Council . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Links . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Team presentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Daily updated info on http://eupresidency.vbo-feb.be

Editorial
Extension of maternity leave to 20 weeks: a with lower allowances, while other countries pay high allowan-
bridge too far! ces, but for a shorter time. In both type of countries, this
measure would be irresponsibly expensive in times of stret-
On October 20, The European Parliament voted in favour of a ched social security budgets, not to speak about the extra
proposal to extend maternity leave from the current 14 weeks cost and burden it implies for companies, especially SMEs.
to 20 weeks across the EU. The basis of the plenary vote was
the report by the Portuguese socialist Moreover, the directive would also be detrimental for
MEP Edita Estrela, which was approved by women’s employment opportunities and would impose
the Women’s Rights Committee in March unnecessary constraints towards achieving much higher
2010 and which calls for 20 weeks mater- female employment rates. The discussion on improving the
nity leave and 2 weeks paternity leave, work-life balance should not be held in the context of a direc-
both at full pay. tive aimed at protecting women’s health.

For the FEB this is a bridge too far. It is Last but not least, the proposal would undermine diverse
not only very concerned about the finan- national systems which offer a mix of different leave arran-
Diane Struyven,
Director of the European cial impact of the proposed directive, but gements. In Belgium, numerous types of leave already exist: a
Department of the FEB also about the negative effects on the la- system of time credit, parenthood leave, leave for personal
bor market for women, due to increased costs. For Belgium, reasons, … All these systems were already introduced to bet-
the additional costs would represent at least 160 million ter combine work and life. There is no justification to add new
EUR annually, a figure confirmed by the impact assessment measures on top of the existing systems. Therefore, the busi-
executed at the request of the European Parliament itself. An ness world exhorts the Council to take into account these
evaluation of the situation in the EU shows that some member arguments. 
states already have extended maternity leave, but combine it

Economic and Financial Affairs

Economic and Financial Affairs Council & Force on economic governance chaired by Herman Van
Eurogroup (October 18-19, 2010) Rompuy convened for the last time to present its final
report. The recommendations and concrete proposals out-
On Monday, October 18, on the eve of the Economic and lined in the report constitute the biggest reform of the Econo-
Financial Affairs (ECOFIN) Council in Luxembourg, the Task mic and Monetary Union (EMU) since the creation of the euro.

Brussels calling - 1 -
 The 16-page document, which was presented almost 7 EVENTS&MEETINGS
months after the Task Force was established by the Euro-
pean Council of March 2010, aims at two broad targets: 8-9/11/2010 Justice and Home Affairs Council Brussels

9-10/11/2010 Conference (organized with the Mons

• to make sure that each member state takes into account support of the Belgian Presidency):
“Financing the mobility of higher
the impact of its economic and fiscal decisions on its EMU education students and resear-
partners and on the stability of the EU as a whole; to chers”
strengthen the capacity of the EU to react when member 9-10/11/2010 Conference (organized with the Brussels
states policies’ threaten the Union’s stability. support of the Belgian Presidency):
“Careers and mobility of resear-
• Concretely, for this to be achieved, the Task force chers”
issued advice in five directions.
10/11/2010 Extraordinary Competitiveness Brussels
Council
First of all, greater fiscal discipline should be pursued. 10-11/11/2010 Plenary session of the European Brussels
Therefore, it is key that the Stability and Growth Pact (SGP) Parliament
is applied in a stricter way. Specifically, more attention 11/11/2010 Economic and Financial Affairs Brussels
should be paid to debt and fiscal sustainability. For this, the Council - Budget

EU needs a more effective budgetary surveillance mecha- 11-12/11/2010 3rd Knowledge Transfer Forum – Varese, Italy
nism which should focus on the interaction between pu- “Implementing the Innovation
Union – next steps in knowledge
blic deficit and public debt. According to the report, brin- transfer
ging the deficit below 3% of GDP is not sufficient to gua-
11-12/11/2010 G20 Summit Seoul, South
rantee fiscal stability. Therefore, more attention should be Korea
given to the 60% of GDP debt target as set out under the 15/11/2010 Conference (organized with the Brussels
SGP. Effectiveness should also be increased via a wider support of the Belgian Presidency):
“Strategic Energy Technology
range of financial and political sanctions and measures to Plan 2010”
be implemented both preventively and correctively. As
15/11/2010 Conference (organized with the Brussels
for political measures, the Task Force proposes – inter alia – support of the Belgian Presidency):
enhanced reporting requirements, ad-hoc reporting to the “Group action: a necessity for
consumers”
European Council, enhanced surveillance and, if necessary,
a public report. The recommended financial sanctions inclu- 15-16/11/2010 Conference (organized with the Brussels
support of the Belgian Presidency):
de interest-bearing deposits, non interest-bearing deposits “Equality summit – equality and
and even fines. Initially, these financial sanctions will be ap- diversity in employment”

plied only to euro zone members. Later, they will be exten- 15-16/11/2010 Conference (organized with the Seraing
ded to non euro zone members as well (except for the support of the Belgian Presidency):
“Industrial transformations in
United Kingdom). Finally, the Task Force also recommends Europe”
a higher degree of rule-based decision 16/11/2010 Conference (organized with the Leuven
making. It therefore proposes to intro- support of the Belgian Presidency):
“Symposium on international fiscal
duce a reverse majority rule for the
data exchange”
adoption of enforcement measures.
16/11/2010 Eurogroup meeting Brussels

Secondly, a new mechanism to broa- 16-17/11/2010
den macroeconomic surveillance
should be established. The Task Force
recommends its establishment since
the economic crisis has shown that 16-17/11/2010
Herman Van Rompuy compliance with the SGP is not
enough to guarantee economic sta-
bility. The mechanism should involve annual assessments of
macroeconomic vulnerabilities and imbalances as well as 16-19/11/2010
the risks they pose. In case there are serious imbalances,
member states should be faced with a deadline to take
17/11/2010
measures. In the occurrence of repeated non-compliance, it
should be possible to impose sanctions on euro area mem-
bers, the Task Forces argues.
Conference (organized with the Brussels
support of the Belgian Presidency):
“Working longer through better
working conditions and new modes
of work and career organization”
Conference (organized with the Brussels
support of the Belgian Presidency):
“Urban freight transport and logis-
tics - innovative and sustainable
solutions for Europe”
Conference (organized with the Brussels
support of the Belgian Presidency):
“Positive visions for biodiversity”
Conference (organized with the Brussels
support of the Belgian Presidency):
“Contribution of science & techno-
logy parks to the knowledge eco-
nomy in Europe”

17/11/2010 Economic and Financial Affairs Brussels

The goal of deeper and broader coordination should be Council
achieved via the introduction of the ‘European

Brussels calling - 2 -
semester’. Aimed specifically at preventing a recurrence of EVENTS&MEETINGS
the Greek sovereign debt crisis, this third recommendation
17-18/11/2010 Conference (organized with the La Hulpe
was one of the first initiatives the Task Force took to reinforce support of the Belgian Presidency):
fiscal policy coordination. Concretely, the European semester “SMEs, research and innovation:
turning knowledge into profit”
will be introduced as of 2011 and will consist out of a six-
17-18/11/2010 Conference (organized with the Brussels
month cycle which will start every year in March. The semes- support of the Belgian Presidency):
ter will start with the presentation of a Commission report ana- “Cars 2010 – vehicle inspection
and mileage fraud”
lyzing each member state’s economy. Based on this report, the
European Council will identify member states’ main econo- 18/11/2010 Seminar on the EU market access FEB premises,
strategy (with the presence of Ravensteinstraat
mic challenges, and strategic policy advice will be given. European Commissioner for Trade 4, Brussels
After having received the advice in April, member states will Karel De Gucht)

then review their medium-term budgetary strategies and 18/11/2010 Conference (organized with the Brussels
support of the Belgian Presiden-
lay out national reform programmes. In June and July, before cy): “Socio-professional integra-
national budgets are being finalized, the Council will again tion and equal opportunity: dis-
abilities and diversity at work”
assist member states by giving policy advice. The European
semester was already endorsed by the Council in September. 18/11/2010 European SME Summit Brussels
18-19/11/2010 Education, Youth, Culture and Brussels
Sport Council
Fourthly, the Task Force believes that there is a great need for
the establishment of a credible crisis resolution framework. 18-19/11/2010 High-level workshop on the 2050 Brussels
strategy for a low-carbon Europe
In the wake of the financial crisis, the European Financial Stabi-
19/11/2010 Conference (organized with the Ghent
lity Facility (EFSF) and the European Financial Stability Mecha- support of the Belgian
nism (EFSM) have been set up to address financial distress and Presidency): “Flemish scientific
economic congress 2010”
to avoid contagion. However, as these bodies have been set
up for a period of three years only, the Task Force considers 19-20/11/2010 NATO Summit Lisbon, Portugal

that, in order to guarantee financial stability in the medium 20/11/2010 EU-US Summit Lisbon, Portugal
term, it is necessary to set up a permanent crisis resolution 22/11/2010 General Affairs Council Brussels
mechanism. Given the fact that this would require a treaty
22/11/2010 Foreign Affairs Council Brussels
change, further work is needed (see ‘European Council’ sec-
22-23/11/2010 Conference (organized with the Brussels
tion of this newsletter). support of the Belgian
Presidency): “Implementation of
European directives”
Finally, as to achieve more effective economic governance,
the Task Force also urges for stronger institutions both at EU 22-24/11/2010 Conference (organized with the Brussels
support of the Belgian Presidency):
and at national level. Notably at national level, public institu- “Investing in well being at work:
tions should provide independent analyses, assessments and addressing psychosocial risks in
times of change”
forecasts on domestic fiscal policy matters to guarantee long-
term sustainability and to reinforce fiscal governance. 22-25/11/2010 Plenary session of the European Strasbourg,
Parliament France

On the same day, the Finance Ministers of the Eurogroup con-
vened as well. The ministers discussed the latest developments
regarding the financial stability of the euro area. They also dis-
cussed the preparations of the G20 Finan-
ce Ministers meeting of October 21-23 in
Gyeongju, South Korea and the G20 Lea-
ders summit of November 11-12 in Seoul.
A day later, on Tuesday October 19, the
ECOFIN Council met under the Presiden-
cy of Belgian Finance Minister Didier
Reynders. Even though the two-day mee-
ting was mainly focused on the presenta-
tion of the final report of the Task Force, a
number of other important issues were scheduled on the se-
cond day’s agenda as well.
The most sensitive topic was the draft directive on the mana-
gement of hedge funds and other alternative investment funds.
10/12/2010 EU-India Business Summit Egmont Palace,
Brussels
The participants reached an agreement on the so-called Alter-
native Investment Fund Managers (AIFM) directive with a
view to allow its adoption at first reading in the European Par-
liament. In line with the commitments made by the EU at the
G20 and as pledged by the European Council, the directive
intends to regulate all market operators whose activities
might pose a risk to financial stability. In concrete terms, the
draft aims to establish EU rules for monitoring and supervising
the risks AIFMs pose to the stability of the financial system. It
also intends to allow them – under strict requirements – to
provide services throughout the European single market.
The Council also examined a draft directive aimed at streng-
thening member state cooperation with regard to direct
taxation. In a context of increased taxpayer mobility and a ri-
sing number of cross-border transactions, the directive would

Brussels calling - 3 -

enable member states to better combat tax fraud and tax
evasion by fulfilling their growing need for mutual assistance
regarding information exchange.
With regard to Romania and Lithuania, which have been
subject to an excessive deficit procedure since July 2009, the
ECOFIN Council shared the Commission’s opinion that
both member states took effective action to reduce their
deficits. On February 16, the Commission recommended both
countries to take effective action to bring their deficit levels
back under 3% of gross domestic product (GDP) as set out in
the SGP. Since both member states are making satisfactory
progress in reducing their deficits, they are well on their way
to meet the 2012 Council deadline. Henceforth, according to
the Council, no further action is needed at this stage.
Furthermore, the Council adopted the conclusions of a joint
report of the Economic Policy Committee (EPC) and the
Commission regarding the efficiency and effectiveness of
public spending on higher education. The report concludes
that, especially in times of budgetary consolidation, it is very
important to enhance the efficiency and effectiveness of pu-
blic expenditure on higher education by improving cost effi-
ciency and governance. The report also states that in Europe,
there is a great need for highly-skilled labour. In this perspec-
tive, the Council reaffirmed its Europe 2020 pledge to
increase the share of the population with a tertiary degree.
Lastly, the report calls on the Commission to take these fin-
dings into account in its analyses and proposals for the
Europe 2020 strategy.
The Council also took note of a second EPC report, this
time on the exchange of best practises with regard to
national budgetary frameworks. In line with the conclusions
of the ECOFIN Council of May 18, the Council adopted the
conclusion that peer reviews of member states’ fiscal frame-
works should be carried out more regularly.
With the intention to present it at the European Council of
October 28-29, a report on levies and taxes on financial
institutions was also approved. The report, which was
requested by the European Council last June, examines the
possibilities for such levies
and taxes to be implemen-
ted. However, as to safe-
guard the flow of credit to
the economy, the report
warns for overburdening
the financial industry with
capital and liquidity require-
ments and funding mea-
sures for deposit guarantee
schemes. Therefore, the report suggests that, in the short
term and to eliminate multiple charging of banks operating in
several member states, a minimum level of coordination
should be achieved. In the medium term, proposals for set-
In the spotlight
G20 ministerial meeting (October 21-23, 2010)
On October 21-23, Finance Ministers and central bank go-
vernors of the 19 economically most important countries
plus the EU met in Gyeongju, South Korea, to discuss global
economic challenges ahead of the G20 Leaders Summit of
November 11-12 in Seoul.
In the context of the
fragile and uneven
global economic reco-
very, participants com-
mitted themselves to
achieving a strong,
balanced and sustai-
nable growth in a col-
laborative and coordi-
nated way. Furthermore, with the support of the Financial
Stability Board, the Group of 20 agreed to take action both
at national and international level in order to reinforce the
global financial system.
In addition, a historic deal was made in Gyeongju when
Finance Ministers agreed to changes in the structure of
the International Monetary Fund (IMF). Until now the IMF –
which was set up in 1944 to oversee the world’s financial sys-
tem – was characterised by an overrepresentation of
European countries. As a result of changes in the balance of
power of the global economy, membership and voting rights
in the IMF’s board did not represent the importance and
weight of countries in the world economy anymore. However,
due to the EU’s willingness to acknowledge this and to give
up two of its seats in the organisation’s executive board,
emerging countries will now dispose over more voting
rights in the IMF. Belgian Finance Minister Didier Reynders,
who represented the EU in South Korea as current Economic
and Financial Affairs Council President, suggested that the
Netherlands and Belgium, along with other mid-ranking EU
economies, could share a seat. In addition, he proposed simi-
lar changes to be implemented in the G20.
ting up crisis resolution me-chanisms should be based on
Commission proposals, the report stated.
Also, in the run up to the meeting of the
G20 Finance Ministers and central bankers,
which took place from October 21 to 23 in
Gyeongju, South Korea, the Council agreed
on the common EU position. This includes the
reform of international financial institutions, fur-
ther reinforcing the global financial system and
the ‘G20 Framework for a Strong, Sustainable
and Balanced Growth’ (i.e. the G20’s economic
growth strategy for the coming years).
Finally, EU Finance Ministers took note of the conclusions
of the informal ECOFIN Council which convened in Brus-
sels on September 30 and October 1. An important topic
Brussels calling - 4 -
discussed at this meeting was the progress made in refor-
ming the financial sector. More specifically, the International
Accounting Standards Board (IASB), credit rating agencies,
financial oversight in the EU and the United States, the Basel
Employment and Social Affairs
Employment, Social Policy, Health and
Consumer Affairs Council (October 21, 2010)
On October 21, the Employment, Social Policy, Health and
Consumer Affairs (EPSCO) Council held a meeting in
Luxembourg. The session was alternately chaired by Joëlle
Milquet (Belgian Minister of Employment and Equal
Opportunities), Laurette Onkelinx (Minister of Social Affairs
and Public Health) and Philippe Courard (State Secretary for
Combating Poverty).
First, the Council adopted new guidelines for the em-
ployment policies of the member states (see boxed text)
with a view to achieve the Europe 2020 objectives. These
guidelines represent the second part of the so-called ‘inte-
grated guidelines’ and complement the broad guidelines
for the economic policies of the member states (which were
already adopted by the Council on July 13). The 10 inte-
grated guidelines were drafted to support the realization
of the 5 ‘headline targets’ enshrined in the Europe 2020
strategy, and as such lay the foundations of the structural
reforms which the member states will have to carry out. All
headline targets will have to be translated into national tar-
gets by member states. The latter will have to submit their
draft national reform programmes to the European
Commission by November 12. The national reform pro-
grammes should be finalized by mid-April 2011.
Second, a policy debate was held and conclusions were
adopted on the governance of the European Employ-
ment Strategy within the context of the Europe 2020
strategy and the European semester. The European
Employment Strategy is a dialogue between the European
Commission and the EU member states, with the involve-
ment of social partners, which aims at creating more and
better jobs through information exchange and joint discus-
sions. Ministers recalled the important role of employ-
ment policies in the macroeconomic development of
the EU, and emphasized that the EPSCO Council should
play its full role within the framework of the EU 2020 strat-
egy and the European semester. The need for clear moni-
toring in order to assess progress towards the objectives
of the employment guidelines was also recognized. In this
respect, the Council mandated the Employment
Committee (EMCO, see boxed text) to finalize its work on
III-agreement on capital requirements for banks, as well as
bank levies were discussed. Other issues at stake were gover-
nance reforms in the IMF and the G20, as well as the global
economic outlook. 
Ten integrated guidelines for the realization
of the Europe 2020 strategy
First part: broad guidelines for economic policies of the
member states
1. ensuring the quality and the sustainability of public finances;
2. addressing macroeconomic imbalances;
3. reducing imbalances in the euro area;
4. optimising support for research, development and innova-
tion, strengthening the knowledge triangle and unleashing
the potential of the digital economy;
5. improving resource efficiency and reducing greenhouse gases;
6. improving the business and consumer environment and mod-
ernising the industrial base in order to ensure the full func-
tioning of the internal market.
Second part: guidelines for the employment policies of
the member states
7. increasing labour market participation and reducing structu-
ral unemployment;
8. developing a skilled workforce responding to labour market
needs, promoting job quality and lifelong learning;
9. improving the performance of education and training systems
at all levels and increasing participation in tertiary education;
10. promoting social inclusion and combating poverty.
Five headline targets enshrined in the Europe 2020
strategy
Headline targets belonging to the broad guidelines for eco-
nomic policies of the member states;
• 3% of the EU’s gross domestic product (GDP) should be
invested in research and development (R&D);
• the ‘20-20-20’ climate and energy targets should be met (i.e.
a reduction of greenhouse gas emissions by 20%, an increase
of the share of renewable energies in final energy consump-
tion to 20%, and a 20% increase in energy efficiency).
Headline targets belonging to the guidelines for the employ-
ment policies of the member states
• 75% of the population aged 20-64 should be employed;
• the share of early school leavers should be below 10% and at
least 40% of the younger generation should have a tertiary
degree;
• 20 million less people should be at risk of poverty.
Brussels calling - 5 -
a Joint Assessment Framework (JAF) by the next EPSCO
Council meeting in December. In addition, national
delegations described major bottlenecks holding back
growth and employment in their respective national
labour markets. As challenges for different member
states were broadly similar, the Presidency concluded that
there is room for a common strategy.
The EPSCO Council also determined how it would
contribute to the work of the European Council in the
framework of the European semester, namely:
• Ahead of each European semester, it would take stock
of the progress made towards the Europe 2020 headline
and national targets and identify possible common poli-
cy themes for closer surveillance.
• Before the traditional European Council in spring, the
EPSCO Council would identify in the socalled ‘Joint
Employment Report’ the main employment trends
requiring strategic guidance by the European Council.
• Finally, at the end of the European semester, the EPSCO
Council would examine and adopt country-specific rec-
ommendations for member states in the field of employ-
ment.
It is now up to the European Council to make a final deci-
sion regarding the proposed involvement of the EPSCO
Council in the European semester.
Third, the Council prepared the Tripartite Social Summit
which was held on October 28 just before the European
Council of October 28-29, and which dealt with the role
of economic governance in the creation of growth and
jobs (see ‘Social partners’ section in this newsletter).
Fourth, the European Commission presented to the
EPSCO Council its communication on the Europe 2020
flagship initiative ‘Youth on the move’, which was fol-
lowed by an exchange of views. The Commission pub-
lished its communication on September 15. With this flag-
ship initiative, the EU intends to respond to the chal-
lenges young people face and to help them to succeed in
the knowledge economy. The text focuses on four main
lines of action: education and life-long learning, raising
the quality and the attractiveness of European higher edu-
cation, mobility, and the improvement of the employment
situation of young people.
Fifth, the Council took note of a number of opinions and
reports. EMCO issued an opinion entitled ‘Making tran-
sitions pay’, which was approved by the Council. The
document stresses the importance of providing people
with the necessary security to better cope with the
requirement to be mobile, and outlines the conditions for
making transitions into and within the labour market pay.
The latter include access to information, labour market
transparency, the availability of training opportunities, the
flexible organisation of work, and adequate social rights.
Then ministers also held a discussion on a joint paper of
EMCO and the European Commission on the choice of
employment measures to mitigate jobless recovery in
times of fiscal austerity. They concluded that fiscal con-
solidation should not mean sacrificing investment in hu-
man capital, education and training. Other positive em-
ployment measures included support for youth employ-
ment, support for mobility and transitions, short-time
working programmes and the establishment of effective
public employment services. A third document on the
agenda was an opinion on the social dimension of the
Europe 2020 strategy, prepared by the Social
Employment Committee (EMCO)
The Employment Committee is a Treaty-based Committee
which plays an important role in the development of the
European Employment Strategy. EMCO prepares discussions
in the Council each autumn of the employment package: the
Employment Guidelines, Joint Employment Report and
recommendations on the implementation of national employ-
ment policies. EMCO also formulates opinions and contribu-
tions at the request of the Council, the Commission or at its
own initiative.
Social Protection Committee (SPC)
The Social Protection Committee is a Treaty-based Committee
which serves as a vehicle for cooperative exchange between
member states and the European Commission in the frame-
work of the open method of coordination (OMC) on social
inclusion, health care and long-term care as well as pensions
(the so-called ‘social OMC’). In particular, the SPC plays a cen-
tral role in preparing the discussion in the Council on the
annual Joint Report on Social Protection and Social Inclusion.
The Committee also prepares reports, formulates opinions or
undertakes other work within its fields of competence, at the
request of either the Council or the Commission or on its own
initiative.
Brussels calling - 6 -
Protection Committee (SPC, see boxed text). Ministers
held a policy debate, after which the text was approved.
The opinion mainly dealt with the place of social protec-
tion and social inclusion in the Europe 2020 strategy.
Ministers agreed that fiscal consolidation should not stand
in the way of social policy, and that national reform pro-
grammes should include a section on social protection
and poverty reduction. Finally, European Commissioner
for Employment, Social Affairs and Inclusion László Andor
presented the Commission’s green paper on pensions,
which was published on July 7.
Under the header of ‘any other business’, the European
Commission informed the Council on the status of Roma
inclusion, and the Council agreed on the position that the
EU will adopt in the respective (Stabilisation and)
Association Councils of six third countries (i.e. Tunisia,
Morocco, Algeria, Israel, Croatia and the Former Yugoslav
Republic of the coordination of social security systems.
The Council also made a statement on the Framework
Agreement signed by the European Parliament and the
Social partners
Tripartite Social Summit (October 28, 2010)
On October 28, the second Tripartite Social Summit of
the year took place in Brussels, just before the start of the
European Council later on the same day. The Tripartite
Social Summit aims to ensure the effective participation of
the social partners in implementing the EU’s economic
and social policies, and consists of the Council Presidency
(currently Belgium) and the two subsequent Presidencies
(i.e. Hungary and Poland), as well as the Commission and
social partners. This Tripartite Social Summit was chaired
by Belgian Prime Minister Yves Leterme, European Com-
mission President José Manuel Barroso and European
Council President Herman Van Rompuy. From the employ-
ers’ side, participants included among others Philippe De
Buck (Director General of BUSINESSEUROPE), Pieter
Commission on October 20 governing the relations
between the latter two institutions. It noted that several
provisions in the Agreement distort the institutional bal-
ance set out in the treaties, and warned that it would sub-
mit to the European Court of Justice “any act or action by
the Parliament or the Commission performed in the appli-
cation of the provisions of the Framework Agreement that
would have an effect contrary to the interests of the
Council and the prerogatives conferred upon it by the
Treaties”.
One day before the EPSCO Council, on October 20, the
European Parliament voted in favour of a proposal to
extend maternity leave from the current 14 weeks to 20
weeks across the EU. The package is highly controversial.
Opponents – and the business world in particular – argue
that the financial impact of extending maternity leave will
be substantial, especially for SMEs, and that the extension
might have negative effects on the labour market for
women due to increased costs. Supporters say that the
measure would on the contrary encourage the participa-
tion of women in the labour market as it would make
working more compatible with family life. The most con-
tentious question is how much replacement income
women should receive while on maternity leave. Some
member states currently already have extended maternity
leave, but combine it with low allowances, while other
countries pay high allowances, but for a relatively short
time. In the coming months, the Commission will try to
find a compromise acceptable to both the Parliament and
the Council. 
Timmermans (Director General of the Federation of
Enterprises in Belgium (FEB)), Péter Vadasz (Co-President
of MGYOSZ, representing business in Hungary) and Lech
Pilawski (Director General of PKPP Lewiatan, representing
business in Poland). From the political world, Viktor Orban
(Hungarian Prime Minister), Joëlle Milquet (Belgian Em-
ployment Minister) and László Andor (European Com-
missioner for Employment, Social Affairs and Inclusion)
were inter alia present. From the trade unions’ side, John
Monks participated on behalf of the European Trade
Union Confederation (ETUC). The Tripartite Social Summit
dealt with the question how economic governance can
best be designed to foster jobs and growth in the EU,
and how to best combine a crisis exit strategy aimed
at limiting public debt with a strategy allowing invest-
ment in skills, technology and infrastructure.
Brussels calling - 7 -
 Commission President Barroso said that the main objec-
tive for the coming period is to tackle the current high
unemployment rate. He underlined that fiscal consolida-
tion can be combined with social policies. Belgian Prime
Minister Leterme expressed his support to the idea of
involving social partners in the Europe 2020 strategy and
stated that he wanted the Tripartite Social Summit to
be anchored in the European semester by holding a
meeting with
social partners
before the tradi-
tional European
Council meetings
in spring and in
June. Belgian
Employment
Minister Joëlle
José Manuel Barroso, Herman Van Milquet expressed
Rompuy & Yves Leterme
her support to the
latter idea. Moreover, Joëlle Milquet stressed the impor-
tance of employment policies in economic governance
and the Europe 2020 strategy. Commissioner Andor sta-
ted that the Employment, Social Policy, Health and Con-
sumer Affairs (EPSCO) Council should be more involved
in the development and implementation of macroeco-
nomic policies.
Social partners also made contributions to the debate.
On behalf of BUSINESSEUROPE, Philippe de Buck
underlined the importance of more effective coordination
of fiscal and broader economic policies and specifically
urged EU leaders to introduce automatic sanctions in
the framework of a reinforced Stability and Growth
Pact (SGP) to reduce the room for political horse-trad-
ing. The Director General of BUSINESSEUROPE then said
that all EU policies should
help to achieve the twin
objective of more growth
and more jobs. He stressed
that both employers and
trade unions agree on the
need to combine the sus-
tainability of public finances
with excellence in education,
training and research.
Philippe De Buck called
upon governments to put in Steven D’Haeseleer, Philippe de Buck & Pieter Timmermans
place incentives for firms to
hire, instead of new measures that would make it more
difficult to employ people. He also referred to the impor-
tant role of the EU internal market, in which much poten-
tial currently remains unfulfilled. With regard to the post-
ing of workers directive, he invited the European
Commission to consult and involve social partners.
Finally, he called upon all parties to ask themselves
whether they had done enough to create the conditions
for growth, such as structural reforms in labour markets
and social systems. “If we do not review them today, we
will not be able to sustain them tomorrow,” Philippe de
Buck concluded.
Pieter Timmermans of the FEB also addressed the par-
ticipants of the Tripartite Social Summit. He underlined
that Europe should first focus on sound economic funda-
mentals, creating the conditions for growth, which could
then be translated into more jobs. According to him, this
is the path the EU should follow in order to be able in
the future to sustain its ‘way of life’. Hence, the imple-
mentation of economic governance at the EU level
should be correctly phased and combine a close follow-
up of public finances and increased competitiveness of
European companies. Regarding sound public finances,
Pieter Timmermans urged member states to adopt ambi-
tious national reform programmes in the framework of
the European semester which focus coherently on com-
petitiveness, growth and budget. Concerning the last
element, he underlined that the consolidation of public
finances should mainly be aimed at expenditure control
which has a less negative impact on growth and job cre-
ation than an increase in taxes. With regard to increased
competitiveness, member states should make progress in
the field of structural reforms. “This is a question of
‘modify or mummify’,” stated the FEB Director General.
Finally, on the SGP, Pieter Timmermans stressed that a
sufficiently automatic character of sanctions is a conditio
sine qua non to prevent the reformed Pact of becoming
a diluted discretionary regime like in the past.
After the Tripartite Social Summit, European Council
President Herman Van Rompuy stated that the exit
strategy to reduce
public debts and pre-
vent further currency
crises now had to be
linked with an entry
strategy for growth,
jobs and social inclu-
sion. “But Europe can-
not deliver a one-fits-
all concept,” he said.
“We need a tailor-
made design for each
member state.” Regar-
ding the implementation of the Europe 2020 strategy,
President Van Rompuy invited social partners to actively
take part and cooperate in the pending process to iden-
tify national bottlenecks and set national targets. 
Brussels calling - 8 -
 Foreign Affairs
Foreign Affairs Council (October 25, 2010)
On October 25, a meeting of the Foreign Affairs Council
was held under the chairmanship of Catherine Ashton, High
Representative of the EU for Foreign Affairs and Security
Policy.
EU Ministers of Foreign Affairs first of all held a brief discus-
sion in preparation of upcoming bilateral summits with
the United States (November 20), Ukraine (November 22)
and the Union for the Mediterranean (November 20-21).
Second, the Foreign Affairs Council adopted
conclusions on a comprehensive European in-
ternational investment policy, a new exclusive
EU competence since the entry into force of the
Lisbon Treaty. The Council acknowledges “the
crucial role of foreign direct investment (FDI) in
fostering competitiveness, economic growth and
productivity, strengthening trade relations
between nations, and contributing to sustainable
development, job creation and enhanced con-
sumer benefits”. It states that the EU’s in-
vestment policy should support the Union’s objective of
remaining the world’s leading destination and source of
investment and reflect its commitment to maintain an open
investment environment. With regard to existing bilateral
investment treaties, the Council stresses that the new legal
General Affairs
General Affairs Council (October 25, 2010)
On October 25, a meeting of the General Affairs Council
was held in Luxembourg. Steven Vanackere, Belgian
Minister for Foreign Affairs and Institutional Reforms chaired
the session.
First of all, the Council took stock of the follow-up to be
given to the meeting of the European Council on
September 16, based on an information note prepared by
the Belgian Presidency. This document contains follow-up
items on the implementation of the Europe 2020 strategy,
financial services, economic governance, the G20, climate
change and external relations. In addition, the General
Affairs Council prepared the European Council of October
28-29 (see ‘European Council’ section in this newsletter).
Second, the Council discussed Serbia’s application for EU
framework should not negatively affect investor protec-
tion and guarantees enjoyed under the existing agree-
ments. To that end, the European Commission published on
July 7, 2010 a draft regulation establishing transitional
arrangements for bilateral investment agreements
between EU member states and third countries.
Furthermore, the Council recommends a number of criteria
for selecting priority investment partners, such as the
economic climate, market size and growth, strategic impor-
tance, political and institutional stability and the degree of
local investment protection. Then the Council underlines the
need to ensure the inclusion of fundamen-
tal standards in future negotiations, such
as fair and equitable treatment, non-dis-
crimination, ærotection against expropria-
tion, free transfer of capital funds and pay-
ments, and dispute settlement mecha-
nisms. Social and environmental aspects of
FDI are also taken into account, as well as
the rights and obligations of investors. In
this regard, the European investment poli-
cy must continue to allow the EU and its
member states to adopt and enforce mea-
sures necessary to pursue public policy objectives. Finally,
the Commission is invited to carry out a detailed study on
relevant issues concerning international arbitration sys-
tems, in particular the legal and political feasibility of EU
membership in international arbitration institutions. 
membership. The country applied to become an EU mem-
ber state on 22 December 2009. Highlight in the Council
conclusions is the invitation of EU Foreign Affairs Minis-
ters to the European Commission to submit an opinion
on Serbia’s readiness to become an official candidate
member state. In the coming months, Serbia will need to
answer to a detailed questionnaire of the Commission. This
Council initiative is generally considered as a reward to
Serbia for the constructive attitude it showed towards
Kosovo in a resolution of the United Nations General
Assembly of 9 September 2010. Especially the Netherlands
has been blocking further steps in Serbia’s EU accession
process, accusing the Tadic administration of not doing
enough to cooperate with the International Criminal
Tribunal for the former Yugoslavia (ICTY) in The Hague.
The Council’s conclusions on Serbia reaffirm that the future
of the Western Balkans lies in the EU, but also that each
Brussels calling - 9 -
country’s progress towards membership depends on its indi-
vidual efforts to comply with the so-called Copenhagen cri-
teria and the conditionality enshrined in the Stabilisation
and Association Process. Furthermore, Serbia is encour-
aged to make progress in the dialogue process between
Belgrade and Pristina, with the support of the EU and its
High Representative. Specifically, the Council recalls that
Serbia’s full cooperation with the ICTY continues to be
required, and states that this will remain a central element
in the Council’s evaluation of Serbia’s progress. Finally, the
Council concludes that the arrest of two remaining fugitive
war criminals, Ratko Mladic and Goran Hadzic, would be the
most convincing proof of Serbia’s efforts
and cooperation with the ICTY.
Third, with regard to the EU’s
2011 budget, the Council de-
cided not to approve all amend-
ments which the European Parlia-
ment made in order to increase its
draft budget. Following the Lisbon
Treaty, a Conciliation Committee will
now be convened to agree on a joint text within 21 days.
Finally, the General Affairs Council approved draft regula-
tions applicable to the European External Action Service
(EEAS), amending the previous Financial Regulation appli-
Biodiversity
10th Conference of the Parties to the
Convention on Biodiversity (October 18-29,
2010)
From October 18 to 29, delegates from almost 200 coun-
tries convened in Nagoya, Japan, for the United Nations
Convention on Biological Diversity. EU
Environment Commissioner Janez Potocnik
and Joke Schauvliege, Flemish Envi-
ronment Minister and current EU Environ-
ment Council President, were nothing but
positive on the outcome of the
conference. In a joint statement they said
“Nagoya has been a major step forward”
and that they hope “future generations will
regard it as a tipping point which brought our planet back
from the brink of an ecological disaster”.
Since the European Commission estimated that the annual
loss of ‘ecosystem services’ amounts to roughly 50 billion
EUR per year, and since deforestation is responsible for
around 20% of global CO2 emissions, the importance of the
cable to the general budget of the European Communities,
and Staff Regulation of officials of the European Communi-
ties. An agreement with the European Parliament had been
found earlier at a meeting on October 14, which was endor-
sed by the Parliament on October 20. Amendments to the
Staff Regulation provides inter alia a number of criteria for
the recruitment of EEAS officials, namely highest standard
of ability, efficiency, integrity, and a broad geographical
basis. The point of gender balance is also addressed.
Progress will be monitored annually, and an overall report
has to be submitted to the Parliament, the Council and the
Commission by mid-2013. The two regulations were the last
legal acts which had to be adopted in order to make the
EEAS operational. In addition, the General Affairs Council
adopted an amendment to the 2010 EU budget, foresee-
ing start-up funds for the EEAS worth 9,5 million EUR.
Also on October 25, Catherine Ashton, the High Repre-
sentative of the EU for Foreign Affairs and Security Policy,
announced the appointment of Pierre Vimont (French) as
the Executive Secretary General of the EEAS, and of David
O’Sullivan (Irish) as EEAS Chief Operating Officer. On
October 29, two more appointments were announced,
namely of the EEAS Deputy Secretary Generals. Helga
Schmid (German) will become Deputy Secretary General for
Political Affairs and Maciej Popowski (Polish) for Interinsti-
tutional Affairs. 
‘Aichi Target’ (i.e. the Strategic Plan of the Convention on
Biological Diversity) can hardly be overestimated. The main
goal of the protocol is to create a framework to manage
the world’s genetic resources and to share their financial
benefits with developing countries.
To achieve this, participants pled-
ged to set up national biodiver-
sity programmes within two
years. Concretely, these pro-
grammes are aimed at halting
over-fishing, reducing pollution,
protecting coral reefs and stop-
ping the loss of genetic diversity
in agricultural ecosystems. In addi-
tion, it was agreed that countries will increase the area of
protected land in the world from 12,5% to 17% within the
next ten years. As for the oceans, the protected area will go
from 1% now to 10% by 2020.
Furthermore, as to increase the current levels of develop-
ment assistance to support biodiversity, a resource mobiliza-
Brussels calling - 10 -

tion strategy was adopted. In order to unlock billions of dol-
lars to help developing countries, a protocol was adopted
on sharing the benefits of using earth’s genetic resources.
Now that the protocol still needs to be ratified by the signa-
tory nations – this excludes the United States – industry re-
sistance may still be expected. In this context, Jo Leinen,
chairman of the European Parliament’s (EP) Environment
Committee and leader of the EP’s delegation in Nagoya,
said that, in order to create a global level playing field,
American companies need to follow the protocol as well.
He added that funding for the actions set out in the proto-
col should come from both public and private sources. Mr.
Leinen also expects the Commission to propose legislation
on biodiversity. 
European Council
European Council (October 28-29, 2010)
On October 28-29, EU Heads of State and Government came
to Brussels for a meeting of the European Council. Chaired by
European Council President Herman Van Rompuy, the mee-
ting was mainly dedicated to economic governance, following
the publication of the final report of the Task Force on
economic governance. European leaders also prepared the
EU’s position for the G20 Summit in Seoul (November 11-12),
as well as for the United Nations (UN) Climate Change
Conference in Cancún (November 29 – December 10). Finally,
they exchanged views on the stance the EU should adopt
during upcoming bilateral summits with the United States
(November 20), Ukraine (November 22) and Russia
(December 7).
A week before the European Council, on October 21, the
Task Force on economic governance chaired by the Euro-
pean Council President and composed inter alia of EU Finan-
ce Ministers, published its final report
with recommendations to strengthen
economic governance in the EU. The 16-
page document proposes:
• a reinforced Stability and Growth Pact
(SGP) to improve budgetary surveillance;
• the introduction of a new mechanism for
macroeconomic surveillance aimed at
addressing macroeconomic imbalances and vulnerabilities;
• improved policy coordination through the introduction of
the so-called ‘European semester’;
• further work on a robust framework for crisis management;
• stronger institutions both at national and EU level for more
effective economic governance.
More details on the final report of the Task Force can be
In the spotlight
FEB lunch debate with Connie Hedegaard
(October 29, 2010)
On October 28, at the occasion of a lunch debate organized by
the Federation of Enterprises in Belgium (FEB), European
Commissioner for Climate Action Connie Hedegaard was
invited by the FEB to talk about the international climate negoti-
ations and the EU’s climate policy.
She was introduced by FEB President Thomas Leysen, who
outlined the main concerns of the business world regarding
these topics. Concretely, these include a fair implementation of
the Emissions Trading Scheme’s benchmarks, opposition to a
unilateral move to a 30% emission reduction target and a
more effective EU climate diplomacy.
During her speech, which she delivered to representatives from
both the Belgian and the European business world, Connie
Hedegaard emphasized the importance of the EU’s climate
and energy agenda in the context of future growth and inno-
vation. As the EU cannot compete with emerging economies in
terms of tax rates and labour costs, Europe has to better exploit
its frontrunner position in the field of eco-innovation and emis-
sion reduction technologies, she stated. Since emerging
economies such as China are rapidly (and successfully) scaling up
their efforts in trying to increase their market share in green tech-
nology markets, the need for Europe to act has never been
greater, she added. She also argued that, due to reduced eco-
nomic activity in the past two years, the carbon price has
dropped and will probably continue to remain low in the future.
Connie Hedegaard defended the Commission’s push for stric-
ter emission reduction targets. She said that without this push,
the EU might lose its leading position in clean technology mar-
kets and hence, an important source of sustainability and welfare.
found in the ‘Economic and Financial Affairs’ section of this
newsletter.
On October 28, the European Council endorsed the Task
Force’s report and called for a fast-track approach with re-
gard to the adoption of secondary legislation implemen-
ting the recommendations. On Septem-
ber 29, the Commission already tabled a
comprehensive package of proposals on
economic governance, which are mostly
in line with the proposals of the Task
Force. The aim for the European Parlia-
ment and the Council is now to reach an
agreement over the Commission’s leg-
islative proposals by the summer of
2011. Nevertheless, a number of issues remains pending.
First of all, the Task Force was not able to reach an agree-
ment on how the impact of pension reforms should be
accounted for in the implementation of the SGP, i.e. in the
calculation of public debt and deficit levels. The European
Council therefore invited the Economic and Financial Affairs
Brussels calling - 11 -
Council to speed up its work on this issue and report back in
December to ensure a level playing field within the SGP
between member states which have already undertaken pen-
sion reforms and those who haven’t yet. The latter fear that
the exclusion of pension reforms implies an issue of ‘hidden
debt’, which would not be taken into account in the SGP.
Secondly, discussions were held
about the establishment of a per-
manent crisis mechanism to safe-
guard the financial stability of the
euro area. Initially not foreseen, this
item was put on the agenda of the
European Council only recently, fur-
ther to a joint statement by French President Nicolas
Sarkozy and German Chancellor Angela Merkel on October
18. This statement said inter alia that amendments to the EU
treaties are needed to establish a robust crisis resolution
framework ensuring orderly crisis management in the future
and allowing for the suspension of voting rights of member
states seriously violating the basic principles of the Economic
and Monetary Union (EMU). Despite initial reluctance to start
a new round of treaty change, the European Council did, in
the end, agree upon the need to establish a permanent crisis
mechanism to protect the euro during potential future crises
similar to the Greek debt crisis earlier this year. EU Heads of
State and Government therefore invited Herman Van Rompuy
to undertake consultations within the European Council on a
limited treaty change. The European Commission has already
expressed its intention to do preparatory work on the general
features of the future new mechanism, looking among other
things at the role of the private sector, the role of the Interna-
tional Monetary Fund (IMF) and the strong conditionality
under which the new mechanism would operate in order to
avoid moral hazard. At its December meeting, the Eu-
ropean Council intends to take a final decision on both the
outline of the crisis mechanism and on a limited treaty
amendment. EU leaders want to have the new framework
and its legal basis put in place by mid-2013 when the current
financial safety net expires (see boxed text).
The other demand of Germany and France, i.e. the suspen-
sion of voting rights of member states seriously violating
EMU principles, did not get any support from other
European Council members. EU leaders then held a brief
exchange of views on the EU budget. Heads of State
and Government underlined that the forthcoming Multi-
annual Financial Framework for the period 2014-2020
should reflect the consolidation efforts being made by
member states to bring their public debt and deficit le-
vels to a more sustainable path. The United Kingdom was
able to secure considerable support for a moderate EU
budget in the future. Talks about the 2014-2020 multi-
annual budget will kick off in 2011.
Another point on the agenda of the European Council was the
preparation of the G20 Summit in Seoul, scheduled to take
place on November 11-12. In a joint letter, European Council
President Van Rompuy and Commission President Barroso
stated that “the G20 is now at a turning point, having shifted
its focus from immediate crisis response to longer-term global
economic coordination”. The EU has several objectives for the
G20 Summit. First and foremost, it intends to ensure global
recovery and the implementation of the G20 Framework
for strong, balanced and sustainable growth. To correct
global economic imbalances, advanced deficit economies
should increase their respective domestic savings rates, while
emerging markets need to stimulate domestic consumption
From the Greek sovereign debt crisis to
a permanent euro area crisis mechanism
On 2 May 2010, Eurogroup Finance Ministers agreed on a 110
billion EUR rescue plan for Greece which was facing an acute
sovereign debt crisis which threatened the financial stability of
the euro area as a whole. 80 billion EUR of that amount was
contributed by euro zone countries, while the International
Monetary Fund (IMF) made available the remaining 30 billion
EUR. In return, Greece had to sign a Memorandum of
Understanding (MoU) with the European Commission (acting
on behalf of euro zone members) setting out a three-year pro-
gramme designed to address fiscal imbalances.
This initiative was considered insufficient by financial markets as
worries about other weak European economies such as Spain,
Portugal, Italy and Ireland continued. Hence, on 9 May 2010, an
extraordinary meeting of the Economic and Financial Affairs
(ECOFIN) Council was held to address in great haste the imme-
diate problem of the possible contagion which shook the euro
area to its foundations. The Council set up the European Fi-
nancial Stabilisation Mechanism (EFSM), a 60 billion EUR
instrument funded by the European Commission, guaranteed by
the EU budget and meant for member states which are yet to
adopt the euro. Euro zone countries finally decided to comple-
ment the EFSM with the European Financial Stability Facility
(EFSF). The EFSF is in fact a company which can issue bonds or
other debt instruments on the market to raise funds for the pro-
vision of loans to euro zone countries in financial distress. Issues
are backed by guarantees given by euro area members of up to
440 billion EUR on a pro-rata basis, in accordance to their share
in the paid-up capital of the European Central Bank (ECB).
Finally, the IMF also accepted to participate in the programme
for up to 250 billion EUR. This resulted in a financial safety net
of unprecedented scale worth
approximately 750 billion EUR.
A first problem is that these 3 facili-
ties – the Greek package, the EFSM
and the EFSF – only have a tempo-
rary character and will expire mid-
2013. Germany has already made it
clear that it is not willing to do a sec-
ond rescue operation as it did with
Greece in spring. Second, the current EU treaties do not allow
for the bail-out of member states, as stipulated by the so-
called ‘no bail-out’ clause (i.e. article 125 of the Treaty on the
Functioning of the European Union). The latter argument might
lead the German constitutional court to strike down the EFSF
and EFSM.

and adopt more flexible exchange rate policies which
reflect economic fundamentals. Second, the EU wants the
G20 to maintain the momentum in the field of financial regu-
latory reform. Discussions will mainly deal with the Basel-III
agreement which sets out stronger capital and liquidity stan-
dards for banks. In addition, the EU wants to make progress
regarding systemically important financial institutions and the
harmonization of crisis management and resolution regimes.
Third, the EU aims to complete the reform of international
financial institutions, with a focus on the IMF. In this field,
G20 Finance Ministers and central bank governors agreed on
October 23 in Gyeongju on a set
of proposals to give emerging
economies (e.g. Brazil, Russia,
India and China) more weight in
the International Monetary Fund’s
governance. IMF members’ quo-
tas – money that member coun-
tries pay as their capital subscrip-
tion which determines their voting
power, more or less in line with
the size of their respective
economies – will be doubled. As a result of this quota reba-
lancing, the voting share of underrepresented emerging eco-
nomies will increase by over 6%. China will overtake Germany,
France and the United Kingdom to become the third most
powerful IMF member (after the United States and Japan).
Furthermore, it was agreed that Europe would give up two of
its seats in the 24-seat IMF Executive Board. A fourth priority
for the EU will be the strengthening of global financial safe-
ty nets. More particularly, the link and cooperation between
global and regional safety nets must be reinforced. Fifth, the
G20 needs to give a new political impulse to the Doha trade
negotiations in the framework of the World Trade Organi-
zation (WTO). Sixth, a growth-oriented G20 development
agenda needs to be adopted to bring emerging economies
into an international development framework which would
enable traditional donors to better coordinate their efforts.
Seventh, energy-related issues need to be addressed, such as
the price volatility of fossil fuels and the functioning and trans-
parency of financial and commodity
markets. Eighth, the G20 should give
political momentum to the upcoming
climate change conference in Cancún.
Finally, the EU will continue to strongly
support G20 efforts to combat cor-
ruption. The Seoul Summit is the last
high-level meeting of the G20 before
France takes over the presidency in the
beginning of 2011.
The European Council also reviewed preparations for the
UN Climate Change Conference which will take place in
Cancún from November 29 until December 10. EU leaders
endorsed the conclusions of the Environment Council of Oc-
tober 14 which set out its position and expectations for the
Hence, Germany has been pushing for a change of the current
EU treaties that would create a legal basis for the setup of a
permanent crisis resolution mechanism. On October 18,
German Chancellor Angela Merkel struck a deal with French
President Nicolas Sarkozy in the French seaside resort of
Deauville. France decided to back the German plans in ex-
change for German support for a weakening of the sanctions
regime in the future reinforced Stability and Growth Pact (SGP),
an item on the French wish list. Both countries were heavily
criticized for their unilateral conduct. Second, several parties,
including several Members of the European Parliament and
European Central Bank President Jean-Claude Trichet, have
been warning for weaker sanctions within the SGP. Third,
many member states are very reluctant to reopen the debate
on the EU treaties. Adopting the Lisbon Treaty almost took a
decade and many member states are afraid of a new period of
deep division and political uncertainty. Next to negative refe-
rendum outcomes, there is always the additional risk that other
countries will propose their own amendments to the current
treaties, like the United Kingdom where some politicians have
been calling for a ‘repatriation’ of EU powers to the national
level. Fortunately, the Lisbon Treaty provides for a ‘simplified’
treaty revision procedure, which might enable some member
states to avoid constitutional requirements such as referenda.
Despite strong initial opposition against the German-French
position, inter alia during the Foreign Affairs Council of Octo-
ber 25 where the point was already brought up, the European
Council eventually agreed upon the establishment of a perma-
nent crisis mechanism and a possible treaty change. As Germa-
ny and France together account for almost half of all guarantee
commitments under the 440 billion EUR EFSF, they possessed
the necessary political weight to push their vision through.
In an address during the opening ceremony of the College of
Europe in Bruges on November 2, Angela Merkel countered
accusations that Germany and France had “carelessly reopened
the treaty change package” by saying that “the EU needs a
treaty that enables it to address the challenges of our time”.
Cancún Summit (see the ‘Environment’ section in the 5th
issue of this newsletter). In its own conclusions, the
European Council stated that it considers the Cancún
Conference a significant intermediary step towards a global
and comprehensive legally binding framework. It also con-
firms the willingness of the EU to consider a
second commitment period under the
Kyoto Protocol, but only as part of a wider
outcome including the perspective of the
global and comprehensive framework en-
gaging all major economies. Furthermore, the
Environment Council is invited to reassess the
situation after Cancún, examine the options to
move beyond a 20% reduction in greenhouse
gas emissions, and report back to the
European Council on this matter by spring
2011. Finally, the EU will continue to underline the impor-
tance of further increasing transparency of climate change
financing, and encourage regional initiatives to tackle cli-
mate change as part of a more diversified approach to
engage with key partners.
Brussels calling - 13 -
Finally, EU Heads of State and Government discussed the key
political messages to be promoted by European Council Pre-
sident Herman Van Rompuy and Commission President José
Manuel Barroso at the upcoming bilateral summits with the
United States (in Lisbon on November 20), Ukraine (in Brussels
on November 22) and Russia (in Brussels on December 7).
Regarding the United States, the EU intends to reassert the
transatlantic relationship by strengthening cooperation in areas
such as the economic recovery, climate change, security and
development. Concerning Ukraine, the EU will express its sup-
port to ongoing reforms and intends to add momentum to the
Association Agreement negotiations, with a special focus on a
deep free trade area. With regard to Russia, the country’s
accession to the WTO and outstanding bilateral , such as trade,
investment and energy sector cooperation, will be on the
agenda. 

LINKS

• Website of the Belgian Presidency of the Council of the European Union

http://www.eutrio.be
• Website of the Belgian EU Presidency of the Federation of Enterprises in Belgium (FEB)
http://eupresidency.vbo-feb.be

TEAM PRESENTATION

Presentation of the European Department of the FEB

Diane Struyven
Director of the European Department of the FEB – Permanent Delegate to BUSINESSEUROPE
Tel: +32 (0)2 515 08 34
ds@vbo-feb.be

Michael Voordeckers
Advisor at the European Department of the FEB
Tel: +32 (0)2 515 09 82
mv@vbo-feb.be

Arnaud Thysen
Deputy Advisor at the European Department of the FEB
Tel: +32 (0)2 515 09 31
at@vbo-feb.be

Michiel Humblet
Intern at the European Department of the FEB
Tel: +32 (0)2 515 08 04
guesteurop@vbo-feb.be

Pieter-Jan Van Steenkiste

Intern at the European Department of the FEB
Tel: +32 (0)2 515 09 84
guesteurop2@vbo-feb.be

FEB – Federation of Enterprises in Belgium

Ravensteinstraat 4 – 1000 Brussels
Tel. 02 515 08 11 – Fax. 02 515 09 15

PUBLISHER: Olivier Joris – Wolvenbergstraat 17 – 1180 Brussels

PUBLICATION MANAGER: Stefan Maes – Tel. 02 515 08 43 – sm@vbo-feb.be
GRAPHIC DESIGN: Vanessa Solymosi, Landmarks – sm@vbo-feb.be
COPYRIGHT: Reproduction with acknowledgement of source is permitted

FEB – member of

Brussels calling - 14 -